Indonesian e-commerce firm Bukalapak said Thursday that its revenue for the first quarter of 2022 (1Q22) grew by 86 percent year on year  to IDR788 billion ($54.39 million), underpinned by its Mitra Bukalapak’s growth.

Bukalapak said in a statement that Mitra Bukalapak’s 1Q22 revenues grew by 227 percent year on year to IDR472 billion ($32.58 million), 47 percent higher than 4Q21.

Mitra Bukalapak’s contribution to the company’s revenues also increased from 34 percent in 1Q21 to 60 percent in 1Q22.

Bukalapak also recorded a net profit of IDR14.5 trillion ($1 billion) in 1Q22 due to the gain from its investment in PT Allo Bank Tbk.

In 1Q21, the group registered a net loss of IDR324 billion ($22.36 million).

Bukalapak’s adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) stood at IDR372 billion ($25.67 million) in 1Q22, an improvement in adjusted EBITDA ratio to total processing value (TPV) from -1.2 percent of TPV in 1Q21 to -1.1 percent of TPV in 1Q22.

Meanwhile, the company was able to record operating income of IDR14.42 trillion ($994.24 million) in 1Q22, as compared to IDR328 billion ($22.61 million) in 1Q21 predominantly due to the gain from investment in PT Allo Bank Tbk.

According to Bukalapak, the firm continues to deliver positive business growth with 1Q22 TPV grew by 25 percent year on year to IDR34.1 trillion ($2.35 billion).

Its TPV growth has been supported by a 34 percent increase in the number of transactions between 1Q21 and 1Q22.

74 percent of the company’s TPV is from outside the Tier 1 regions of Indonesia, where it continues to see strong growth in all-commerce penetration and digitizing trends among offline micro retail stores.

Mitra Bukalapak is the main growth driver of the company as its 1Q22 TPV surged by 78 percent year on year to IDR17.3 trillion ($1.19 billion).

Mitra Bukalapak’s contribution to Bukalapak’s overall TPV increased from 35 percent in 1Q21 to 51 percent in 1Q22.

Mitra Bukalapak’s growth was driven by an improvement in its product mix and a broader range of service offerings. At the end of March 2022, the number of registered by Mitra Bukalapak was 13.1 million versus 11.8 million at the end of December 2021.

The company continues to focus on its strategy to deliver positive and sustainable growth, while simultaneously managing its expenses.

The 1Q22 general and administrative expenses (excluding stock based compensation) ratio to TPV was 1 percent versus 1.1 percent the same period last year.

Bukalapak’s overall contribution margin, calculated as gross profit after sales and marketing (S&M) costs, improved from -0.3 percent of TPV in 1Q21 to -0.1 percent of TPV in 1Q22.

Marketplace’s contribution margin improved from -0.2 percent of marketplace TPV in 1Q21 to 0.2 percent of marketplace TPV in 1Q22 whilst Mitra Bukalapak’s contribution margin improved from -0.5 percent of Mitra TPV in 1Q21 to -0.4 percent of Mitra TPV in 1Q22.

In addition to its continued efficiency improvements combined with robust growth figures, Bukalapak also has a strong capital position with IDR 20.0tn of cash as of the end of March 2022.

Bukalapak is Indonesia’s fourth-largest e-commerce company after Tokopedia, Sea Ltd’s Shopee and Alibaba’s Lazada. The 11-year-old online marketplace focuses on micro, small and medium-sized enterprises (MSMEs) beyond top-tier cities in the country.

The company was listed in Indonesia in August, 2021. China’s Ant Group, Singapore sovereign wealth fund GIC, Microsoft were among its backers.

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